After moving mostly higher early in the session, stocks have shown a lack of direction over the course of the trading day on Monday. The major averages have spent the day bouncing back and forth across the unchanged line.
Currently, the major averages are roughly flat. While the Dow is down 28.21 points or 0.1 percent at 25,820.66, the Nasdaq is up 3.59 points or 0.1 percent at 7,692.12 and the S&P 500 is up 1.34 points or 0.1 percent at 2,823.82.
The initial strength on Wall Street reflected continued optimism about a U.S.-China trade deal after China's state-owned Xinhua news agency reporting the U.S. and China have made further "concrete progress" on the text of a final agreement.
News on the merger-and-acquisition front added to the positive sentiment, as Deutsche Bank (DB) and rival German bank Commerzbank confirmed they are in merger talks.
Buying interest has waned considerably since then, however, as traders seem reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later this week.
The Fed is widely expected to leave interest rates unchanged, although traders are likely to keep a close eye on the accompanying statement for clues about the outlook for rates.
The central bank's economic projections and Fed Chairman Jerome Powell's subsequent press conference are also likely to be in focus.
Meanwhile, a notable drop by Boeing (BA) is weighing on the Dow, with the aerospace giant sliding by 2.2 percent.
The slump by Boeing comes after a Wall Street Journal report said federal prosecutors and Transportation Department officials are scrutinizing the development of the company's 737 MAX jetliners.
On the U.S. economic front, a report from the National Association of Home Builders showed homebuilder confidence has held steady in the month of March.
The report said the NAHB/Wells Fargo Housing Market Index came in at 62 in March, unchanged from February. Economists had expected the index to inch up to 63.
"Builders report the market is stabilizing following the slowdown at the end of 2018 and they anticipate a solid spring home buying season," said NAHB Chairman Greg Ugalde.
Sector News
Most of the major sectors are showing only modest on the day, contributing to the lackluster performance by the broader markets.
Oil service stocks are seeing substantial strength, however, with the Philadelphia Oil Service Index surging up by 3.3 percent.
The rally by oil service stocks comes amid an increase by the price of crude oil, as crude for April delivery is climbing $0.43 to $58.95 a barrel.
Natural gas and banking stocks are also seeing significant strength in mid-day trading, while some weakness has emerged among gold and chemical stocks.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index advanced by 0.6 percent, while China's Shanghai Composite Index spiked by 2.5 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the German DAX Index fell by 0.3 percent, the French CAC 40 Index inched up by 0.1 and the U.K.'s FTSE 100 Index jumped by 1 percent.
In the bond market, treasuries are showing a lack of direction as traders look ahead to this week's Fed meeting. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 2.596 percent.
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